Greencore Secures £350m Sustainability-Linked Credit Facility
In a transformative move aimed at bolstering both its financial standing and sustainability efforts, Greencore, a leading UK-based manufacturer of convenience foods, has announced the successful negotiation of a new five-year £350 million sustainability-linked revolving credit facility (RCF).
This strategic financial development, which replaces Greencore’s previous £340 million facility and a £45 million term loan, carries significant implications for the company’s future prospects and environmental stewardship.
The new RCF extends Greencore’s average maturity profile to nearly 4.5 years, offering a secure financial foundation for the company’s ongoing growth initiatives. Furthermore, it includes the enticing option of two additional one-year extensions, providing the flexibility necessary for adaptability in the dynamic food industry.
Furthermore, a notable feature is the substantial £100 million accordion feature, a provision that holds the potential for further financing facilities, reinforcing Greencore’s readiness for future expansion.
What sets this RCF apart is its incorporation of performance targets closely aligned with Greencore’s long-term sustainability strategy. This emphasis on sustainability echoes the sentiments of the company’s CEO, who recently affirmed that Greencore remains steadfast in its commitment to building a more robust and efficient business, with a mission to serve customers and consumers throughout the United Kingdom.
In a statement echoing the sentiment of the company’s CEO, Greencore’s new RCF signifies a major milestone in the company’s journey toward a more sustainable future. It provides significant financial flexibility, enabling the pursuit of ambitious growth objectives while harmonising financing arrangements with sustainability goals.
The syndicate of banks behind this crucial financial support comprises Allied Irish Banks plc, Barclays Bank Plc, Coöperative Rabobank U.A. (trading as Rabobank Dublin), Danske Bank A/S, Irish Branch, HSBC Continental Europe, and The Governor and Company of the Bank of Ireland.
What’s more, Allied Irish Banks plc played a central role as the sustainability coordinator, ensuring the alignment of the RCF with Greencore’s sustainability targets. Bank of Ireland, in turn, acted as the agent, facilitating a seamless process from start to finish.
Greencore’s strategic advisory partner, IBI Corporate Finance, provided invaluable guidance throughout the agreement’s negotiation and execution, showcasing a commitment to excellence in financial strategy and execution.
In conclusion, Greencore’s successful securing of a £350 million sustainability-linked revolving credit facility underscores the company’s unwavering dedication to both growth and sustainability.
What’s more, this milestone financial agreement, replacing previous loans and extending the maturity profile, equips Greencore with the financial agility needed to further its expansion efforts while staying firmly committed to its sustainability objectives.
Backed by a consortium of prestigious banks and guided by the expertise of IBI Corporate Finance, Greencore is positioned to exert a profound influence in the convenience food industry, simultaneously championing environmental responsibility.
And finally, this strategic move highlights the company’s commitment to serving the needs of its customers and consumers throughout the United Kingdom, solidifying its status as a prominent leader in both financial and sustainability arenas.
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